SolarWinds (NYSE:SWI) Shares Gap Up – What’s Next?

Shares of SolarWinds Co. (NYSE:SWI) gapped up prior to trading on Thursday . The stock had previously closed at $13.89, but opened at $14.61. SolarWinds shares last traded at $14.30, with a volume of 45,879 shares traded.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Robert W. Baird lifted their price target on shares of SolarWinds from $14.00 to $15.00 and gave the company a “neutral” rating in a research note on Friday, November 1st. Scotiabank started coverage on SolarWinds in a research note on Friday, September 13th. They set a “sector perform” rating and a $13.00 price objective on the stock. Finally, Wedbush began coverage on shares of SolarWinds in a report on Thursday. They set an “outperform” rating and a $20.00 target price on the stock. Five research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat.com, SolarWinds currently has an average rating of “Hold” and a consensus target price of $15.00.

SolarWinds Stock Performance

The firm has a market capitalization of $2.39 billion, a P/E ratio of 63.68 and a beta of 0.96. The company’s 50 day moving average is $13.43 and its 200-day moving average is $12.63. The company has a quick ratio of 0.71, a current ratio of 0.71 and a debt-to-equity ratio of 0.88.

SolarWinds (NYSE:SWI) last released its quarterly earnings data on Thursday, October 31st. The software maker reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.02. The firm had revenue of $200.03 million for the quarter, compared to the consensus estimate of $194.03 million. SolarWinds had a net margin of 4.93% and a return on equity of 7.96%. The business’s revenue was up 5.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.11 earnings per share. As a group, equities analysts anticipate that SolarWinds Co. will post 0.74 EPS for the current year.

Insiders Place Their Bets

In related news, insider Jason Bliss sold 135,000 shares of the business’s stock in a transaction on Monday, November 4th. The stock was sold at an average price of $13.02, for a total transaction of $1,757,700.00. Following the sale, the insider now directly owns 838,789 shares in the company, valued at approximately $10,921,032.78. The trade was a 13.86 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Sudhakar Ramakrishna sold 200,000 shares of the firm’s stock in a transaction dated Thursday, November 7th. The stock was sold at an average price of $13.68, for a total value of $2,736,000.00. Following the completion of the transaction, the chief executive officer now owns 2,212,171 shares of the company’s stock, valued at approximately $30,262,499.28. This represents a 8.29 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 351,000 shares of company stock valued at $4,703,780 in the last 90 days. 1.95% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC grew its position in SolarWinds by 344.7% in the third quarter. GAMMA Investing LLC now owns 2,068 shares of the software maker’s stock worth $27,000 after acquiring an additional 1,603 shares in the last quarter. nVerses Capital LLC bought a new position in shares of SolarWinds during the second quarter valued at about $41,000. Allworth Financial LP increased its holdings in shares of SolarWinds by 732.1% in the third quarter. Allworth Financial LP now owns 3,786 shares of the software maker’s stock worth $49,000 after buying an additional 3,331 shares during the period. Migdal Insurance & Financial Holdings Ltd. bought a new stake in shares of SolarWinds in the 2nd quarter valued at about $58,000. Finally, Allspring Global Investments Holdings LLC grew its position in SolarWinds by 24.6% during the 3rd quarter. Allspring Global Investments Holdings LLC now owns 5,071 shares of the software maker’s stock worth $66,000 after acquiring an additional 1,001 shares during the last quarter. Institutional investors own 93.96% of the company’s stock.

About SolarWinds

SolarWinds Corporation provides information technology (IT) management software products in the United States and internationally. It provides a suite of network management software that offers real-time visibility into network utilization and bandwidth, as well as the ability to detect, diagnose, and resolve network performance problems; and a suite of infrastructure management products, which monitors and analyzes the performance of applications and their supporting infrastructure, including servers, physical, virtual and cloud infrastructure, storage, and databases.